Carnarvon Petroleum Limited (ASX:CVN) Dorado-1 Drilling Update

Perth, July 12, 2018 AEST (ABN Newswire) - Carnarvon Petroleum Limited ("Carnarvon") (ASX:CVN) (OTCMKTS:CVONF) is pleased to provide the following update on the drilling of the Dorado-1 well.

Progress

The Dorado-1 well has drilled down from 3,640 metres Measured Depth ("MD") to around 3,990 metres MD in 8-1/2" hole.

From approximately 3,853 metres MD to 3,947 metres MD, logging while drilling tools indicated a number of sandstone intervals have been encountered as expected within the Caley Member. Elevated gas readings and increased resistivity were observed in interpreted porous and permeable zones, indicating the presence of hydrocarbons. Wireline logging is required to obtain definitive results.

Current Operations

The rig is currently drilling ahead in 8-1/2" hole at around 3,990 metres MD.

Forward Plan

Continue to drill the 8-1/2" hole from 3,990 metres MD to approximately 4,575 metres MD to evaluate the deeper targets of the Milne and Crespin Members, below the Caley Member. There is an option to run a further casing string if deemed necessary to reach the final depth, however at this point it is not anticipated.

Results to date are sufficiently encouraging to warrant the running of the wireline logs over the prognosed reservoir section, which will include fluid sampling and pressure testing, at the completion of drilling.

Well Objective

The primary objective for the Dorado-1 well is to assess the gas and liquids potential in the Caley Member with the well being less than 20km from and updip of the successful Roc-1 and Roc-2 wells.

The Dorado structure at the Caley interval is estimated to contain a gross mean recoverable prospective resource of 545 Bscf of gas and 30 million barrels of associated condensate (being 125 million barrels of oil equivalent ("boe"), gross, Pmean). Multiple secondary targets have been identified by Carnarvon in the Crespin and Milne Members (see Figure 4) and these will also be assessed by the Dorado-1 exploration well. See the recently released volumetric strategy update (ASX 23 April 2018) for details on these targets.

Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project and may relate to undiscovered accumulations. These prospective resource estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Carnarvon Petroleum Limited is an oil and gas exploration company, listed on the Australian stock exchange (ASX:CVN), Frankfurt (FRA:CJB) and US OTC (OTCMKTS:CVONF). Carnarvon has an extensive acreage position in the North West Shelf of Western Australia that is designed to offer investors high alpha leverage to the energy sector. The company's near term focus is on maturing oil, gas and condensate discovered in its Phoenix project, with partner Quadrant Energy, and on bringing into production oil from the Buffalo field.